Tuesday, July 14, 2015

Abbott & Costello: Economics 101

 Unemployment Explained

COSTELLO: I want to talk about the unemployment rate in America.
ABBOTT: Good Subject.  Terrible Times. It's 5%.
C:  That many people are out of work? 
A:  No, that's 14.7%. 
C:  You just said 5 percent
A:  5% Unemployed. 
C:  Right 5% out of work. 
A:  No, that's 14.7%. 
C:  Okay, so it's 14.7% unemployed. 
A:  No, that's 5%. 
C:  WAIT A MINUTE. Is it 5% or 14.7%? 
A:  5% are unemployed. 14.7% are out of work. 
C:  If you are out of work you are unemployed. 
A:  No, Congress said you can't count the "Out of Work" as the unemployed.   You have to look for work to be unemployed.    
A:  No, you miss his point.    
C:  What point? 
A:  Someone who doesn't look for work can't be counted with those who look for work.  It wouldn't be fair. 
C:  To whom? 
A:  The unemployed. 
C:  But ALL of them are out of work. 
A:  No, the unemployed are actively looking for work.
Those who are out of work gave up looking & if u give up, u are not unemployed. 
C:  So if you're off the unemployment rolls that would count as less unemployment? 
A:  Unemployment would go down.   Absolutely! 
C:  The unemployment just goes down because you don't look for work? 
A:  Absolutely it drops.  That's how they get it to 5%. Otherwise it would be 14.7%.
Our govt. doesn't want you to read about 14.7% unemployment. 
C:  That would be tough on those running for reelection. 
A:  Absolutely! 
C:  Wait, I got a question for you.
That means there are two ways to bring down the unemployment number? 
 A:  Two ways is correct. 
C:  Unemployment can go down if someone gets a job? 
A:  Correct. 
C:  And unemployment can also go down if you stop seking a job? 
A:  Bingo.  
C:  So there are two ways to cut unemployment. The easy one is people stop job hunting.           
A:  Now you're thinking like an Economist. 
C:  I don't even know what I just said! 
A:  Now you're thinking like Congress.

No comments: